Donnell Cobbins, Jr. Profiled in Memphis Business Journal Opinion Survey

Universal Commercial VP, Donnell Cobbins, Jr., was profiled recently among four local business professionals, seeking insight on the challenges MBEs face when starting their businesses.

Universal Profiled in Memphis Daily News

Universal Commercial President, Darrell Cobbins, was quoted in an article recently in the Memphis Daily News discussing how smaller/emerging commercial real estate firms are navigating during these tough economic times.

Small Firms Find Footing In Competitive CRE Market
JEFF IRELAND
Darrell Cobbins got started in commercial real estate in June 2001, three months before the 9/11 terrorist attacks wreaked havoc on the economy.

And Cobbins started his own company, Universal Commercial Real Estate LLC, four years ago, coincidentally right before another downturn in the economy.

As the owner of a small real estate firm, he learned how to battle larger, nationally known competitors in a depressed market.

“What it taught me then is that you sort of have to bear down and find some of your traditional bread-and-butter-type deals, but also what I call alternative or non-traditional real estate deals,” he said.

Cobbins, whose company recently helped a nonprofit organization with a land deal, said he is always on the lookout for deals that larger firms may ignore.

“For the company, you have to think about getting some of the corporate and midsize deals, but some of them you’re no going to get,” said Cobbins, whose firm recently completed a deal with FedEx. “I think you have to approach it a little bit differently. There’s overhead and expense for large companies that smaller ones don’t have. I think in times like these it’s a good thing that we have the ability to be flexible and creative, which may be harder for a larger company.”

Cobbins is hardly the city’s only sole CRE practitioner dealing with the challenges of competing against the big boys.

Sam Zalowitz is the president and owner of Zalowitz Commercial Realty in Memphis.

Like most everybody else in the real estate game, his company has taken some financial hits the last few years.

With an increased unemployment rate, office space value has dropped. Retail centers are leasing less space and looking for rent reductions.

Smaller companies like Zalowitz Commercial are affected more dramatically financially than larger national firms when there’s less money coming in.

“I noticed a change late last year,” Zalowitz said. “There are a number of shopping centers, once they revert to an institutional owner, the institutional owners are going with larger firms instead of individual brokers because of contracts on a national or regional basis, which automatically terminates some listings on shopping centers that we’ve had.”

Zalowitz said he gets by thanks to referrals coming from clients he has worked with for years, but it isn’t easy.

He works with larger firms on some deals, but still believes there’s value in tenants and landlords utilizing what small firms bring to the table.

“The national company agents aren’t as knowledgeable,” Zalowitz said. “When it comes to leases on behalf of the landlord, they’re more anxious to just make the deal than to make it right for both the tenant and the landlord long term. They’re into numbers. They’re not into people.”

Rent reductions, Zalowitz said, can be particularly damaging to a small firm.

“It impacts you financially as much as it does the landlords because, while the national firms want to get a cash out commission, individual brokers, and I may be a dying breed, take a lot of their commission over time.”

Collierville-based Hart Properties Group LLC is another example of a small firm trying to compete against larger firms in a depressed market.

Sherri Beutelschies, president of Hart Properties, said the majority of her clients are small-business people.

“And small-business people are still being affected by the down economy,” Beutelschies said. “They’re not seeing the growth that large corporate America is starting to see and talk about.”

While things are nowhere near what they used to be, she has seen some signs of improvement. The last six months or so, she said, she has received more inquiries from potential clients.

Hart Properties manages approximately 1 million square feet of property and has been in business since 1998.

“I’m optimistic that it’s going to get better,” Beutelschies said. “But I think when it gets better it’s going to look different than it did before. We’ll have to get used to what the new good is, if you know what I mean.”

She said her company has been forced to change its business plan and marketing strategies to deal with what clients’ new expectations are.

“Those who are adjusting are surviving,” she said. “Those who aren’t are going away.”

Cobbins said he believes that although times are tough for the little guys, there are deals to be made.

“It may not be the household-name transaction,” he said, “but there are still people out there who need real estate expertise and assistance.”

Universal Commercial's President Honored as 2011 Commercial Real Estate "Power Player" by Memphis Business Quarterly

Universal Commercial Real Estate President, Darrell Cobbins, was recently honored as a select member of the 2011 Memphis Business Quarterly "Power Players" list for Commercial Real Estate Brokers.
"It is truly an honor to be recognized as I approach my ten year anniversary as a commercial real estate professional", said Cobbins. "It is a testament to those who gave me an opportunity to enter this field and the clients who have entrusted me with their business real estate needs".

Universal Commercial | Regional MBE Power Breakfast Launches June 3rd, 2011

Universal Commercial Real Estate, LLC, a certified MBE, is launching a monthly regional Power Breakfast for Minority Businesses Enterprises (MBEs) and their advocates. The monthly gathering, labeled the Universal Commercial Regional MBE Power Breakfast. The first of which will be Friday, June 3rd from 7:30am to 9:00am at the University Club of Memphis.

The topic of this discussion will be the establishment and work of the newly-...formed Minority Business Development Oversight Committee (MBDOC), which is bringing increased accountability across the 15 divisions of Memphis City Government with regard to spending with minority and women-owned businesses.

The presenters will be Alandas Dobbins (President, NSight Communications; Chair of the City of Memphis’ Minority Business Development Oversight Committee) and Carlee McCullough (Director of the City of Memphis’ Office of Contract Compliance).

Admission to this event is $15.
We are asking attendees to RSVP by June 1st to rsvp@universalcommercial.com
or call 901.414.3315 x3.

If you would like to reserve your seat in advance please visit: http://regionalmbepowerbreakfast.eventbrite.com/

MISSION:
The mission of the Universal CommercialRegional MBE Power Breakfast is to foster the growth of minority-owned businesses by building regional relationships, sharing information, and encouraging business-to-business commerce between minority business owners and their advocates.

Universal Commercial Represents Memphis-Based 'Fortune 60' Corporation in Office Lease

Memphis Business Journal
by Andy Ashby

FedEx division nets office lease | Memphis Business Journal
When Memphis needs new office absorption, it apparently can absolutely, positively count on FedEx Corp.
The Memphis-based company has signed a 25,000-square-foot lease at Boyle Investment Co.’s Marsh Center to bring a work group closer to its East Memphis corporate headquarters.

Much of the recent office leasing activity in Memphis has been renewals, expansions or companies moving within the market, so this kind of net gain tightens up the market.

The group, called Customer and Business Transactions, currently operates mainly at FedEx World Headquarters. The nine-building complex at Hacks Cross Road in Southeast Memphis predominantly houses employees of FedEx Express, a subsidiary of FedEx Corp.

The main executives of FedEx Corp., a holding company, have offices on Shady Grove Road.

“The move from our corporate headquarters in Hacks Cross to the Marsh Center will consolidate and bring closer a group that reports to the FedEx Corp. management,” Sally Davenport, spokesperson with FedEx, says. “It will eliminate a lot of the travel time in terms of meetings in particular. They’ll have to walk across the street as opposed to getting in a car and driving 15 to 20 minutes for meetings. It just improves the accessibility of the group with their immediate management.”

The legal group works on customer agreements, internal review of communication materials and general business transactions for FedEx. Some of those employees will be staying at FedEx World Headquarters.

“We still have some remaining legal people who are not moving because they report up through FedEx Express, so I don’t know if the use of that space has yet been determined,” Davenport says.

Boyle developed, owns and manages the six-story, 155,000-square-foot building at 1000Ridgeway Loop. Built in 1995, the property counts Marsh USA Inc., Evans Petree PC and Landmark Community Bank as tenants. The lease brings the building to almost full occupancy.

Traditional Construction Co. Inc. is building out the office space.

Darrell Cobbins, president of Universal Commercial Real Estate LLC, helped broker the lease.

Mark Halperin, executive vice president with Boyle, handles leasing at the property.

“We’re extremely excited to be continuing our relationship with FedEx,” he says. “We also think it’s very positive for the marketplace as it’s a net gain for the market.”

The overall Memphis market registered 69,178 square feet of net absorption in 2010, according to Xceligent Inc.’s fourth quarter report. The market, which has 257 office properties with 19.5 million square feet, ended the year with a 19.5 percent vacancy rate. There are 37 Class A properties with 5.2 million square feet, according to this report.

These types of properties, which include the Marsh Center, lost 95,761 square feet of absorption through full-year 2010. This could be due in part to Highwoods Properties Inc. delivering the 148,000-square-foot Triad Centre III in early 2010.

Much of the recent office leasing activity has been companies moving around the city.

“There has been a lot of musical chairs, but we have seen growth,” Halperin says. “We’re seeing some new deals right now which would be net gain for the overall market. We’ve got more prospects right now than we have had in quite a while. We’re pretty optimistic.”

From the Commercial Appeal's "Done Deals"

*The Power Center Community Development Corp. has bought 18.6 acres on Winchester, east of Mendenhall, for $182,400. Darrell Cobbins and Donnell Cobbins of Universal Commercial represented the buyer. DeVaughn Colvin of Crye-Leike represented the seller, Boston Capital Corporate Fund XXIV.

*Powers-Hill Design has signed a five-year lease for 1,808 square feet of office space at Brinkley Plaza. Darrell Cobbins and Donnell Cobbins of Universal Commercial represented the tenant. Don Drinkard of CBRE Memphis represented the landlord, Sanderlin Place GP and Brinkley Plaza Partnership II GP.

*The Power Center Community Development Corp. bought the former Marina Cove apartment complex for $1.6 million, with plans to demolish the buildings and redevelop the 24 acres. Darrell Cobbins and Donnell Cobbins of Universal Commercial represented the buyer. Curtis Braden of Marcus & Millicap represented the seller, Water Gardens LLC.

*Thomas Consultants has signed a five-year lease for 2,572 square feet of flex space at Airport Distribution Center. Darrell Cobbins and Donnell Cobbins of Universal Commercial represented the tenant. Brad Murchison of CB Richard Ellis Memphis represented the landlord, Inland American TN Distribution.

Universal Represents Tri-State Neurology in East Memphis Office Building Purchase

East Memphis office building sells for $1.2 million
Memphis Business Journal
Date: Wednesday, February 23, 2011, 5:00pm CST


A 15,000-square-foot office building at 5100 Sanderlin Ave. in East Memphis has sold for $1.2 million to Infinity Real Estate LLC.

The building was owned by the Fouts Estate Family Trust and the Don W. Morgan Family Trust. Fouts & Morgan, a certified public accounting firm, has occupied the space since 1981 and will be moving.

The building’s new occupant will be Tri-State Neurology, which is currently located in the medical facility adjacent to St. Francis Hospital-Memphis.

Infinity Real Estate LLC is a joint venture between James J. Wang, M.D., Ph.D, and Rada Petrinjac-Nenadic, M.D.

Stephen W. Anderson and Stephen W. Cross of Associated Realty Services Inc. represented the seller, and Darrell Cobbins and Donnell Cobbins of Universal Commercial represented the buyer.